Singapore Airlines (C6L.SG) +0.3% at $15.88, extending yesterday’s 2.7% rise which came despite news carrier setting aside $61.92 million this FY to pay fine in US relating to cargo price fixing investigation.

“With the resolution on the cargo fine in the US, we believe a key uncertainty on the carrier’s earnings has been removed,” says Morgan Stanley, which has Overweight rating, $19.70 target.

Adds, exceptional charge does not affect current EPS estimates, provision for EC cargo fine in 3Q10 is sufficient, expects SIA Cargo management to negotiate more favourable term on EC fine. Keeps DPS estimate at $0.70 for FY2010.